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Research ArticleArticle

Heterogeneous Impact of the Minimum Wage: Implications for Changes in Between- and Within-group Inequality

Tatsushi Oka and Ken Yamada
Published online before print January 11, 2021, 0719-10339R1; DOI: https://doi.org/10.3368/jhr.58.3.0719-10339R1
Tatsushi Oka
Associate professor of econometrics and business statistics at Monash University.
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Ken Yamada
Professor of economics at Kyoto University
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  • For correspondence: [email protected]
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Abstract

Most of the workers who earn at or below the minimum wage are either less educated, young, or female in the United States. We examine the extent to which the minimum wage influences the wage differential among workers with different observed characteristics and the wage differential among workers with the same observed characteristics. Our results suggest that changes in the real value of the minimum wage account in part for the patterns of changes in education, experience, and gender wage differentials and for most of the changes in within-group wage differentials for workers with lower levels of experience.

JEL codes:
  • C21
  • C23
  • J31
  • J38
  • K31
Keywords:
  • Minimum wage
  • wage inequality
  • censoring
  • quantile regression

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Journal of Human Resources: 58 (5)
Journal of Human Resources
Vol. 58, Issue 5
1 Sep 2023
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Heterogeneous Impact of the Minimum Wage: Implications for Changes in Between- and Within-group Inequality
Tatsushi Oka, Ken Yamada
Journal of Human Resources Jan 2021, 0719-10339R1; DOI: 10.3368/jhr.58.3.0719-10339R1

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Heterogeneous Impact of the Minimum Wage: Implications for Changes in Between- and Within-group Inequality
Tatsushi Oka, Ken Yamada
Journal of Human Resources Jan 2021, 0719-10339R1; DOI: 10.3368/jhr.58.3.0719-10339R1
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Keywords

  • C21
  • C23
  • J31
  • J38
  • K31
  • minimum wage
  • wage inequality
  • censoring
  • quantile regression
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